Silver has established itself as one of the top-performing assets in 2025, significantly surpassing both gold and Bitcoin.
The rally was not driven solely by speculation. On the contrary, it reflected a rare convergence of macroeconomic changes, industrial demand, and geopolitical pressures that could extend into 2026.
Silver performance in 2025 in context
By the end of December 2025, silver was trading close to $71 per ounce, up more than 120% from the beginning of the year. Gold grew by about 60% during the same period, while Bitcoin ended the year slightly down after a volatile period that peaked in October. The price of silver entered 2025 close to $29 per ounce, steadily rising throughout the year. Gains accelerated in the second half of the year due to widening supply deficits and industrial demand exceeding expectations.
Gold also recorded a strong rise, moving from around $2,800 to over $4,400 per ounce, supported by falling real yields and central bank demand.
Silver, however, has outperformed gold by a wide margin, in line with its historical tendency to amplify precious metal cycles.
Bitcoin followed a different path. It surged to a record near $126,000 at the beginning of October, then sharply reversed course and closed December near $87,000.
Unlike metals, Bitcoin failed to maintain inflows as a safe haven during end-of-year risk aversion phases.
Macroeconomic conditions have favored hard assets
Several macroeconomic factors supported silver in 2025. In particular, global monetary policy shifted toward easing. The U.S. Federal Reserve made several rate cuts by the end of the year, pushing real yields down and weakening the dollar.
At the same time, concerns about inflation remain unresolved. This combination historically favors tangible assets, especially those with both monetary and industrial value.
Unlike gold, silver directly benefits from economic expansion. In 2025, this dual role proved decisive.
Industrial demand has become the main driver
The silver rally has increasingly been anchored to physical demand rather than investment flows. Industrial use accounts for about half of total silver consumption, a share that continues to grow.
The energy transition has played a central role. Photovoltaics remained the main source of new demand, while the electrification of transportation and infrastructure added further pressure to an already tight supply.
Global silver markets recorded a fifth consecutive annual deficit in 2025. Supply struggled to respond, as most silver production comes as a byproduct of base metal extraction, rather than from specific silver projects.
The structural demand added by electric vehicles
Electric vehicles significantly increased silver consumption in 2025. Each electric vehicle uses 25 to 50 grams of silver, about 70% more than a vehicle with an internal combustion engine.
With global electric vehicle sales growing in double digits, silver demand in the automotive sector has risen to tens of millions of ounces each year.
Charging infrastructure has accentuated this trend. High-power fast chargers use kilograms of silver in power electronics and connectors.
Unlike cyclical investment demand, silver consumption related to electric vehicles is structural. Increased production directly translates into lasting physical absorption.
Defense spending has discreetly tightened supply
Military demand has become a less visible but increasingly important factor. Modern weapon systems rely significantly on silver for guidance electronics, radar, secure communications, and drones.
A single cruise missile can contain hundreds of ounces of silver, all material that is destroyed during use. For this reason, defense demand is not recyclable.
Global military spending reached record levels in 2024 and continued to rise in 2025, also due to the wars in Ukraine and the Middle East.
Europe, the United States, and Asia have all increased the procurement of advanced munitions, quietly absorbing physical silver.
Geopolitical shocks have reinforced the trend
Geopolitical tensions further strengthened the case for silver. Prolonged conflicts increased stockpiles for defense, while trade fragmentation raised concerns about the security of critical material supplies.
Unlike gold, silver sits at the intersection of national security and industrial policies. Several governments have begun to classify silver as a strategic material, demonstrating its role in both civilian and military technologies.
This dynamic created an unusual chain reaction: geopolitical risk stimulated both investment demand as a safe haven and actual industrial consumption.
Why 2026 could extend the outperformance
Looking to the future, most factors that supported silver prices in 2025 remain valid. The adoption of electric vehicles continues to accelerate. The expansion of energy networks and investments in renewables remain political priorities. Defense budgets show no signs of decreasing.
At the same time, silver supply remains constrained. New mining projects require long lead times, and recycling cannot compensate for the increasing industrial losses due to military use.
Gold could continue to perform well if real yields remain low. Bitcoin could also recover if risk appetite improves. But neither combines monetary protection with direct exposure to global electrification and defense spending.
This combination explains why many analysts see silver in a unique position for 2026.
The silver rally in 2025 was not a single speculative spike. It reflected deep structural changes in the way the global economy consumes this metal.
If current trends persist, silver’s dual role as a monetary hedge and industrial necessity could allow it to outperform both gold and Bitcoin again in 2026.
